Buy L&T, Godrej Consumer, Deepak Fert: Sharekhan

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Buy L&T, Godrej Consumer, Deepak Fert: Sharekhan

Sharekhan has come out with its report on various stocks. According to the research firm one can buy L&T, Godrej Consumer & Deepak Fert.

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RELATED NEWS Buy Rallis India; target of Rs 193: Prabhudas Lilladher Buy UltraTech Cement; target Rs 1,473: Motilal Oswal Buy Rallis India; target Rs 197: Emkay ALSO READ See previous views by Sharekhan See what other Experts & Brokerages are saying about Larsen See messages about Larsen Larsen BSE | NSE 30/05/12 Are Mutual Funds betting on Larsen? Other Stocks in this news Godrej Consumer Products | Deepak Fertilizers and Petrochemicals Coprn |

Sharekhan has come out with its report on various stocks. According to the research firm one can buy L&T, Godrej Consumer & Deepak Fert.

Larsen & Toubro : The Street was worried about L&T's margins and order inflow. The company's performance has been mixed on these parameters. While the margin has been decent for the quarter, trimming down of order inflow guidance today has further deep-rooted the concerns on future earnings growth. We are likely to downgrade our estimates to internalise the revised guidance. At the current levels, the stock is trading at 13.9x our FY2013 earnings estimates. We maintain our Buy rating and would soon come out with a detailed note taking a thorough account of the H1 results.

Godrej Consumer Products : We believe topline growth of above 20% YoY will be the mix of price-led growth and sustained strong volume growth during the quarter. The sequential improvement in the GPM and OPM was the highlight of the quarter. If the raw material prices correct from the current level, we expect GCPL to post a better margin picture in the second half of the year. Overall, Q2FY2012 saw a strong operating performance by GCPL. We will review our earnings estimates for FY2012 and FY2013 after tomorrow's conference call. At the current market price the stock trades at 23.9x its FY2012E earnings per share (EPS) of Rs16.9 and 19.7x its FY2013E EPS of Rs20.5. We maintain our Buy recommendation on the stock with a price target of Rs487.

Deepak Fert : We have fine-tuned our estimates for FY2012 and FY2013 factoring for lower volume growth assumptions in TAN (owing to plant shutdown and moderation in mining activities) and owing to margins pressure on account of rising raw material costs. However, we remain positive on the performance of the agri-inputs business, which is likely to show a strong growth in the coming years. The TAN division is also likely to show a strong uptick once the domestic mining and infrastructure activities pick up. Overall, we remain optimistic on the growth prospects of DFPCL on a longer term perspective. At the current market price of Rs 168, the stock trades at an attractive valuation of 6.3x FY2013E earnings. We maintain our Buy recommendation on the stock with a price target of Rs 188," says Aditya Birla Money research report.

FIIs holding more than 30% in Indian cos   

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To read the full report click on the attachment